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TMI Blog2023 (9) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was asked to pay central excise duty which is as follows:- a. have contravened the provisions of Rules, 4, 6, 8, 10, 11,12 of Central Excise Rules, 2002 (hereinafter referred to as the said rules) read with section 3 of the Central Excise Act, 1944 (hereinafter referred to as the said act) in as much as the said assessee surreptitiously removed control panels and fans valued Rs.71,59,636/- (Rupees seventy one lakh fifty nine thousand six hundred thirty fix only) evading payment of Central Excise duty including Education Cess and S & HE Cess to the tune of Rs.11,19,444/- (Rupees eleven lakh nineteen thousand four hundred and forty four only) [as detailed in Annexure-I] without recording in DSA register by maintaining 'NIL' openi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evaded payment of Central Excise duty including Education Cess and S & HE Cess to the tune of Rs.36,818/- (Rupees thirty six thousand eight hundred eighteen only) (as detailed in Annexure-II); d. have contravened the provisions of sub-rule (1) of rule 4 of Cenvat Credit Rules, 2004 (hereinafter referred to as the said credit rules) in as much as the said assessee irregularly taken credit of Central Excise duty including Education Cess and S & HE Cess of Rs.35,81,349/- (Rupees thirty five thousand eighty one thousand three hundred forty nine only) without receipt of input materials in their factory and utilized the same towards payment of duty on clearance of their manufactured finished products in the year 2006-07 and 2007-08 (as detailed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' and hence on clearing the said goods value of such cenvatable inputs had not been taken into consideration in determining the assessable value of the final product since the appellant had not availed the credit on such inputs and their activity falls under job-work provision. Therefore, they were not required to pay duty, but since the appellant used their own cenvatable inputs so they paid duty on the job charges including the value of their own inputs. 6. With regard to the allegation that appellant has not included the money value of drawings and design received from their customers in the assessable value of their finished goods for discharging central excise duty, it is his contention that the goods received by their customers from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs as such without receiving in their factory, it is fact on record that the appellant has paid duty on the said goods, therefore, the said payment of duty be termed as reversal of cenvat credit as held by the Hon'ble Bombay High Court in the case of CCE, Pune-III Vs. Ajinkya Enterprises [2013 (294) ELT 294 (Bom.)], therefore, no reversal is required by the appellant. 9. With regard to inclusion of the drawings and design supplied by the principal manufacturer to the appellant, it is the contention of the appellant that no value of such design and drawings were paid by the appellant and whatever cost of the design and drawings were borne by the principal manufacturer, who has discharged duty on the final product. The value of drawings a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By another order, the appellants were entrusted job work for welding 3 lugs on each clutch cover. We agree with the learned advocate that instead of first clearing the clutch cover to GSCL and then bringing it back to the factory for welding 3 lugs on the same would invite extra financial burden. As such, instead of actually clearing the clutch covers, the appellants did the job work on the same and returned the goods to GSCL. The job work was done under the cover of challan under Rule 4(5)(a) of Cenvat Credit Rules, 2002. It is not a case where the lugs were supplied free of cost by GSCL so as to be attached and welded to the clutch cover, in which case, their value was required to be added in the value of the final product. Welding of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cenvat credit as held by the Hon'ble Bombay High Court in the case of CCE, Pune-III Vs. Ajinkya Enterprises (supra), wherein Hon'ble the Hon'ble High Court has observed as under:- "10. Apart from the above, in the present case, the assessment on decoiled HR/CR coils cleared from the factory of the assessee on payment of duty has neither been reversed nor it is held that the assessee is entitled to refund of duty paid at the time of clearing the decoiled HR/CR coils. In these circumstances, the CESTAT following its decision in the case of Ashok Enterprises - 2008 (221) E.L.T. 586 (T), Super Forgings - 2007 (217) E.L.T. 559 (T), S.A.I.L. - 2007 (220) E.L.T. 520 (T) = 2009 (15) S.T.R. 640 (Tribunal), M.P. Telelinks Limited - 2004 (178) E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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